RBI may cut CRR by 1% in Dec if FPI flows don't revive: BofAML
Bank of America Merrill Lynch (BofAML) Monday said the RBI is likely to reduce the cash reserve ratio (CRR), or the amount of bank deposits parked with the central bank, by one percentage point in December, if the portfolio flows do not revive.
The brokerage said its liquidity model suggests the RBI will have to do USD 30 bn or Rs 2 lakh crore between December and March, over and above the Rs 40,000cr in November and Rs 36,000cr in October announced or done earlier. Image Source: Reuters